10 tips for finding an apartment that’s right for you

Most people will agree that buying an apartment will give you “more bang for your buck”. Just make sure you ask the right people the right questions to ensure you find exactly what you are looking for. We ask the experts for their tips on how to find an apartment that’s right for you.

1: Make a list of must-have features

Real Estate Institute of Australia president Neville Sanders advises buyers to note what they like and dislike about where they live. “This way you can work out what you want in a new place, what you definitely don’t want and what you can live with or compromise on,” he says.

“For example, with an apartment you can’t push a wall out and create another room or extra space, you have to be content with the space you have.”

2: Get a lawyer

Sanders says: “Good legal advice is vital. Get a solicitor (or conveyancer) to look at the plan of subdivision and contracts to ascertain what you own individually, what you own collectively (as part of the body corporate), what communal facilities you have access to and what fees you are responsible for.”

3: Check the developer’s credentials

CBRE chairman of Residential Projects Justin Brown says buyers should review the project developer’s track record. “Look at other projects they have developed and assess the quality of their buildings and their performance. Do they have the ability to deliver projects on time and to the agreed specifications?” he says.

4: Ensure the project has been approved

Brown says: “Has the development been approved by the planning authority? You would be surprised how many developers start marketing a project before it has been fully approved by the local council. I am sure some of them do this in good faith, expecting to get the approval they seek, only to find the council rejects the proposed top floor or insists on greater setbacks.

“Imagine buying an apartment that won’t exist or has to be reduced in size because the plans have to be amended?”

CBRE is the marketing agent for Palisade Miranda, a luxury apartment project by developer Galileo Group. Brown says: “Palisade Miranda is a perfect example of a project by an award-winning developer, that delivers projects on time and to the agreed specifications. Galileo does the right thing and ensures plans are approved by the council, in this case the Sutherland Shire Council, before it starts marketing.”

5: Make sure it is big enough?

National Property Buyers director Antony Bucello says size matters. “The apartment has to be the right size for you. It needs to be big enough and have the right number of bedrooms to suit the number of people who will live in it. You don’t want to make the expensive mistake of buying an apartment and finding it’s just too small for you.”

6: Let the sunshine in

Bucello says natural light makes a massive difference to the “livability” of an apartment. “Choose an apartment that faces north for the best sun. A living room that faces north (and has big windows) is ideal, east is next best and then west. Avoid buying an apartment that faces south.”

7: Assess the investment risk

National spokesperson for Mortgage Choice Jessica Darnbrough says buyers should steer clear of small apartments because they are seen as a risky investment.

“Lenders, and mortgage insurers, don’t like to loan money on small apartments, particularly those under 40 square metres. They are deemed high risk because they have poor prospects for attracting tenants and lower re-sale value,” she says.

Darnbrough also advises buyers to avoid developments that are close to hazards – in flood-affected areas or close to high voltage powerlines. “My advice to buyers is that if a bank (or other lender) thinks the property is a risky proposition, so should you.”

8: Shop around for finance

Darnbrough says just because one lender knocks you back, doesn’t mean another will. “It could just be that the bank has already approved several loans from buyers in that particular development and doesn’t want to be over-exposed. It pays to look for another lender. You should look and compare a variety of loans anyway, to see which one best suits your circumstances.”

9: Know the rules

The national chief executive officer of Strata Community Australia Kim Henshaw says those who buy an apartment need to understand they will be part of a community.

“That community will have rules and by-laws that cover your rights and responsibilities. It will govern the things you can and can’t do and the way you are expected to conduct yourself. The three Ps – parking, pets and parties – are the most obvious issues that a strata manager will have to deal with. It is important you are comfortable with the rules before you buy,” he says.

10: Make sure you have adequate insurance

Henshaw says it’s important to understand “what constitutes the building and what constitutes content”.

“Engage a solicitor or conveyancer who specialises in strata schemes and ask them to check the plans so you understand what you are responsible for.

“What is deemed part of the building and is covered by the body corporate’s insurance and what will you need to cover in contents insurance? For example, tiles that are fixed to the walls and floors in your apartment might come under the body corporate, but the carpet is your responsibility.”